Savl’s COO Discusses New Frontiers in KYC and Anti-Money Laundering Strategies

Savl’s COO Discusses New Frontiers in KYC and Anti-Money Laundering Strategies

In an exclusive interview with, James Toledano, Chief Operating Officer at Savl, shared insights on the pressing issue of money laundering in the cryptocurrency space and the innovative approaches being employed to tackle it.

Cryptocurrencies, while appealing for their anonymity and decentralization, have increasingly become tools for money laundering. According to Chainalysis’ 2024 Crypto Crime Report, over $24 billion was laundered through crypto last year. The rapid evolution of laundering techniques and lack of stringent regulations have exacerbated the problem, putting even unsuspecting users at risk of severe legal and financial repercussions.

The Role of KYT in Combatting Tainted Assets

Toledano emphasized the importance of avoiding tainted crypto assets, which can lead to being blacklisted by major centralized exchanges and hinder one’s ability to off-ramp assets. Savl is addressing this issue through its Know Your Transaction (KYT) feature, which helps users identify and avoid tainted assets, thus complying with regulations and promoting ethical transactions.

Current Security Challenges in Crypto

Toledano highlighted several security challenges in the DeFi sector, including inadequate security checks in rushed-to-market platforms, regulatory inconsistencies across jurisdictions, and the complexities introduced by privacy coins and mixing services. Emerging technologies like quantum computing and AI also pose potential threats to current crypto security measures.

Addressing Security Risks

To effectively combat these risks, Toledano advocates for a multi-pronged approach: stronger security protocols, smarter regulations, better user education, and more resilient technology. Collaboration among developers, regulators, and the crypto community is essential to achieving a more secure environment.

Effectiveness of Current Regulatory Frameworks

While current regulations and KYC measures have made money laundering more challenging, criminals continue to find innovative ways to bypass these restrictions. Toledano calls for cohesive global teamwork, tech-savvy regulators, better public-private collaboration, enhanced user education, and tougher global enforcement to enhance the effectiveness of these measures.

Emerging Tools and Technologies

AI and blockchain forensics are revolutionizing the fight against crypto money laundering by identifying suspicious transactions through data analysis. Zero-knowledge proofs and secure multi-party computation tools are also crucial for maintaining user privacy while ensuring compliance.

Balancing Compliance and Privacy

To balance compliance and privacy, Toledano suggests developing standards through collaboration between regulators and the crypto industry. Tools like Savl’s KYT feature enable users to conduct risk assessments and avoid transactions with tainted assets, thus fostering a safer crypto environment.

The Promise of Self-Custody

Self-custody in DeFi offers greater security and control by eliminating intermediaries and reducing risks associated with centralized exchange hacks. However, it requires technical proficiency and vigilance against security threats. Major exchanges launching self-custodial wallets indicates growing user demand for this secure option.

Savl’s KYT Feature

Savl’s KYT feature allows users to verify if a crypto address holds illicit or tainted assets, aiding in making safer and informed transaction decisions. The feature leverages real-time data analysis, sanctions and watchlist monitoring, behavioral analysis, risk scoring, and integration with leading AML tools to ensure effective detection and avoidance of tainted assets.

By incorporating advanced blockchain analytics and collaborating with top KYT providers, Savl is at the forefront of developing tools to combat money laundering and enhance the security and integrity of the cryptocurrency ecosystem.

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